5 Reasons Why Crowdsourcing is Much Better than Building an In-house Team

A wise man once said — “The more, the merrier”, and crowdsourcing is all about exploiting that very concept. It involves stripping down a large piece of work to the simplest possible units — termed ‘micro-tasks’, and assigning them to non-contracted workforce of substantial proportions.

A recent study by Crowdsourcing.org shows the increase in crowd labour as an industry, and along with rapid technological advances, demonstrates how managed crowdsourcing holds the promise of a bright future in empowering enterprise growth. As a result, avenues that harness this resource to maximize growth and save internal costs are of primal importance. Crowdsourcing can be a key contributor to your business’s bottom-line:

1. Reduce Costs Considerably

A lot of time and resources are utilized for training and on-boarding new staff. Crowdsourcing eliminates these costs by proving you access to a skilled workforce on a pay-per-task model. Repetitive tasks needed to be done at companies can be effectively crowd sourced instead of putting over-qualified staff on these tasks hence saving your internal resources.

2. Quicker Turnaround

With crowdsourcing your projects are tackled by thousands of workers simultaneously, this ensures quicker completion timelines for projects and in turn, an organization can reap benefits much sooner as compared to traditional methods.

3. Reduce Management Over-head

All projects handed over to crowsourcing teams are completed by workers having the requisite skills to effectively complete the task. These teams are also self- governing, which translates to funds saved in the form of governance, general management of project costs and structure.

4. Flexibility and Scalability

In any organization, the requirement of workers varies depending on the projects/tasks at hand. As a result of this, there might be a sudden requirement of a large number of workers, and in contrast, a lot of employees would be unutilized for a prolonged period of time. Crowdsourcing eliminates this issue and allows you to scale up or down according to your needs.

5. Better Quality in Scale

Using SquadRun you get access to a much higher IQ crowd than the typical employees you can hire for data related tasks. The platform is highly engaging and even mundane tasks such as moderation, categorization, tagging etc are gamified to ensure successful completion of tasks by college students, housewives etc. Various quality checks are put into place to emsure that you get only the best data, further each task is performed by multiple people to achieve the desired level of confidence.

CASE-STUDY

Now let’s try to look at this through a case-study where the Cost vs. Output metric of an ‘In-house’ team and a ‘Crowdsourced’ team can be compared:1

The Challenge

A leading e-commerce company generates 3000+ product reviews and other user generated content each day. Each member of their in-house team (employee), on an average, moderates 150 reviews a day. To be able to moderate the quantum of reviews this company would have to build a team of at least 20- a recurring cost of $12,000 to $72,000 every month [given that the typical monthly salary including employee over-head costs is $600 (in India) and $3600 (in the US)]

The Crowdsourced Solution

SquadRun broke the project down to microtasks for its crowdsourced army of thousands of workers. The reviews were moderated at a cost of $0.025/ review

Proprietary algorithms and workflows were used to ensure Quality Data.

The Results

Reviews were moderated 5 times faster than with an in-house team with a cost reduction of 55% to 92% without drop in quality.

The beauty of crowdsourcing lies in the power of the crowd to do in minutes what may sometimes take days, Crowdsourcing can be rather successfully applied to tasks of recurring and repetitive nature to obtain wondrous results, without any added costs.

The fact that costs remain competitive (at worst) is an added incentive. When the challenge of today is to keep being relevant, it is always preferable to focus on core competencies. Anything else may soon turn out to be a hindering diversion. So, the next time you are faced with a similar problem that draws you out from what you want to do primarily, get in touch with us!

1 The case study is based on actual figures obtained from data available with Squadrun. For more details about the study contact us at

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